According to the report from IHS Markit, the growth of activity in the eurozone private sector accelerated in February, and reached the highest level since September 2021. However, prices for goods and services have shown record growth rates.
The Eurozone PMI Composite Output Index rose to 55.5 points in February, compared with 52.3 points in January. However, the growth rate remained below the levels observed in the second half of 2021, which was due to a shortage of supplies and poor availability of personnel.
The data showed that new orders continued to rise in February, with demand for eurozone goods and services reaching the highest level since September 2021. New export orders also increased, recording the fastest pace in four months. Meanwhile, employment growth accelerated to a three-month high, which was mainly helped by an increase in employment in the manufacturing sector. Employment growth also coincided with a higher level of business optimism in February - the index of future production reached its highest level in 8 months.
IHS Markit reported that in February, backlogs of work increased markedly, while the growth rate was the highest in 6 months. The data also showed that purchase prices rose again in February, and demonstrated the highest rates in the entire history of observations (with the exception of November 2021). Meanwhile, selling prices also showed a record high growth rate in February.